UNITED
STATES




SECURITIES
AND EXCHANGE COMMISSION




WASHINGTON,
D.C. 20549




FORM
10-Q




[X]
            QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934




For the
quarterly period ended September 30,
2009




OR




[  ]
            TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934




For the
transition period from  __________ to _____________




Commission
File number:    000-53043




Man-AHL Diversified I L.P.





(Exact
name of registrant as specified in charter)




Delaware
            
            06-1496634(State
      or other jurisdiction of incorporation or organization)
            
            (IRS
      Employer Identification No.)





c/o
      Man Investments (USA) Corp.123
      North Wacker Drive28th
      FloorChicago, Illinois
            
            60606(Address
      of principal executive offices)
            
            (Zip
      Code)





(312) 881-6800





(Registrant’s
telephone number, including area code)




Indicate
by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.






Yes
      [X]    No
[  ]




Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files).


Yes [ 
      ]    No
[  ]


Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting
company.  See the definitions of “large accelerated filer,”
“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act.




Large
      Accelerated Filer [  ]
            Accelerated
      Filer   [  ]Non-Accelerated
      Filer   [  ]
            Smaller
      reporting company  [X]





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).


Yes
      [  ]    No
[X]












PART I - FINANCIAL
INFORMATION








ITEM
      1.
            Financial
      Statements.




Man-AHL
Diversified I L.P.





STATEMENTS
OF FINANCIAL CONDITION (a)


STATEMENTS
OF OPERATIONS (b)


STATEMENTS
OF CHANGES IN PARTNERS’ CAPITAL (c)


STATEMENTS
OF CASH FLOWS (c)


NOTES TO
THE FINANCIAL STATEMENTS (UNAUDITED)





(a)
            At
      September 30, 2009 (unaudited) and December 31,
  2008


(b)
            For
      the three months ended September 30, 2009 and 2008 (unaudited) and for the
      nine months ended September 30, 2009 and 2008
  (unaudited)


(c)
            For
      the nine months ended September 30, 2009 and 2008
    (unaudited)


















































2












3











4









5









6









7




Notes
to Financial Statements (unaudited)




The
accompanying unaudited financial statements, in the opinion of management,
include all adjustments (consisting only of normal recurring adjustments)
necessary for a fair presentation of Man-AHL Diversified I L.P.’s (a Delaware
Limited Partnership) (the “Partnership”) financial condition at September 30,
2009 and the results of its operations for the three months ended September 30,
2009 and 2008 and nine months ended September 30, 2009 and
2008.  These financial statements present the results of interim
periods and do not include all the disclosures normally provided in annual
financial statements.  It is suggested that these financial statements
be read in conjunction with the audited financial statements and notes included
in the Partnership’s annual report on Form 10-K filed with the Securities and
Exchange Commission for the year ended December 31, 2008.  The
December 31, 2008 information has been derived from the audited financial
statements as of December 31, 2008.







1.
            ORGANIZATION
      OF THE PARTNERSHIP




Man-AHL
Diversified I L.P. (a Delaware Limited Partnership) (the “Partnership”) was
organized in September 1997 under the Delaware Revised Uniform Limited
Partnership Act and commenced operations on April 3, 1998, for the purpose of
engaging in the speculative trading of futures and forward
contracts.  The Partnership is a “feeder” fund in a “master-feeder”
structure, whereby the Partnership invests substantially all of its assets in
Man-AHL Diversified Trading Company L.P. (the “Trading
Company”).  Man-AHL (USA) Limited (the “Advisor”), a United Kingdom
company, is the Partnership’s trading advisor.  Man Investments (USA)
Corp. (the “General Partner”), a Delaware corporation and a registered commodity
pool operator under the Commodity Exchange Act, as amended, is the Partnership’s
commodity pool operator and general partner.  Man Investments Holdings
Limited, a United Kingdom holding company that is part of Man Group plc, a
United Kingdom public limited company, is the sole shareholder of the Advisor,
and Man Investments Holdings Inc., a Delaware corporation that is part of Man
Group plc, is the sole shareholder of the General Partner.




On
January 28, 2008, the Partnership filed a registration statement on Form 10 with
the Securities and Exchange Commission to register the Partnership’s units of
limited partnership interests as required by Section 12(g) of the Securities
Exchange Act of 1934, as amended.




Effective
July 1, 2008, the Partnership issued a new class of units of limited partnership
interests, Class B.  Class B was created solely for retirement plan
investors. The fee structure is identical to Class A.




The
Partnership’s units are distributed through the Partnership or other selling
agents, including Man Investments Inc. (“MII”), an affiliate of the Advisor and
General Partner. MII is a registered broker-dealer and a member of the Financial
Industry Regulatory Authority (“FINRA”).




On April
1, 2009, the Partnership added two new series of units: Class A Series 2 (“Class
A-2”) and Class B Series 2 units (“Class B-2”).  Except as described
in Footnote 4 below, Class A-2 and Class B-2 units are identical to Class A and
B units, respectfully.





2.
            SIGNIFICANT
      ACCOUNTING POLICIES




The
Partnership prepares its financial statements in conformity with accounting
principles generally accepted in the United States of America.  The
following is a summary of the significant accounting and reporting policies used
in preparing the financial statements.




In June
2009, the Financial Accounting Standards Board (“FASB”) issued Accounting
Standards Codification (“ASC”) 105, Generally Accepted Accounting
Principles (“ASC 105”) (formerly Statement of Financial Accounting
Standards (“SFAS”) No. 168, “The FASB Accounting Standards
Codification and the Hierarchy of Generally Accepted Accounting Principles-a
replacement of FASB Statement No. 162”), which establishes the FASB
Accounting Standards Codification (the “Codification” or “ASC”) as the source of
authoritative U.S. generally accepted accounting principles





8





recognized
by the FASB to be applied by nongovernmental entities.  This statement
is effective for financial statements issued for interim and annual periods
ending after September 15, 2009.  On the effective date of this
statement, the Codification superseded all then-existing non-SEC accounting and
reporting standards.  All other non-grandfathered non-SEC accounting
literature not included in the Codification became
non-authoritative.  The adoption of ASC 105 required the Partnership
to adjust references to authoritative accounting literature in the financial
statements, but did not affect the Partnership’s financial position or results
of operations.  The Partnership has implemented the Codification as of
September 30, 2009.




Use of Estimates — The preparation of financial
statements in conformity with accounting principles generally accepted in the
United States of America requires the General Partner to make estimates and
assumptions that affect the reported amounts of assets and liabilities (and
disclosure of contingent assets and liabilities) at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.




Investment in Man-AHL Diversified
Trading Company L.P. — The Partnership’s investment in the Trading
Company is valued at fair value at the Partnership’s proportionate interest in
the net assets of the Trading Company.  Investment transactions are
recorded on a trade date basis.  The performance of the Partnership is
directly affected by the performance of the Trading Company.  Attached
are the financial statements of the Trading Company, which are an integral part
of these financial statements.  Valuation of investments held by the
Trading Company is discussed in the notes to the Trading Company’s financial
statements.




The
Partnership can redeem any or all of its limited partnership interests in the
Trading Company at any month-end at the net asset value per unit of the Trading
Company. At September 30, 2009 and 2008, the Partnership owned 34,564 and 19,448
units, respectively, of the Trading Company.  The Partnership’s
aggregate ownership percentage of the Trading Company at September 30, 2009 and
2008, was 56.55% and 39.83%, respectively.




The
Partnership segregates its investments into three levels based upon the inputs
used to derive the fair value.  “Level 1” investments use inputs from
unadjusted quoted prices from active markets.  “Level 2” investments
reflect inputs other than quoted prices, but use observable market
data.  “Level 3” investments are valued using mainly unobservable
inputs.  These unobservable inputs for “Level 3” investments reflect
the Partnership’s assumption about the assumptions market participants would use
in pricing the investments.  As of September 30, 2009, all of the
Partnership’s investments are “Level 3.”  See also the notes to the
financial statements of the Trading Company regarding Fair Value
Measurements.




Expenses — The Advisor earns a monthly
management fee in an amount equal to 0.1667% (2% annually) of the Partnership’s
month-end Net Asset Value, as defined in the Agreement.  In addition,
the General Partner earns a monthly general partner fee in an amount equal to
0.0833% (1% annually) of the month-end Net Asset Value of Class A and Class B
units.  The general partner fee is included in management fees in the
statements of operations.




The
Advisor also earns a monthly incentive fee equal to 20% of any Net New
Appreciation, as defined in the Agreement, achieved by the
Partnership.  The incentive fee is retained by the Advisor even if
subsequent losses are incurred; however, no subsequent incentive fees will be
paid to the Advisor until any such trading losses are recouped by the
Partnership.




The
Partnership pays a monthly servicing fee to MII, as described in the supplement
to the Agreement dated July 15, 2008, in an amount equal to 0.1250% (1.5%
annually) of the month-end Net Asset Value of Class A and Class B
units.  The Partnership also pays a monthly servicing fee to MII, as
described in the supplement to the Agreement, dated January 2, 2009, in an
amount equal to 0.1042% (1.25% annually) of the month-end Net Asset Value of
Class A-2 and Class B-2 units.  For all classes of units, MII serves
as the placement agent for the Partnership.




Derivative Contracts — The Partnership’s operating
activities involve trading, indirectly through its investment in the Trading
Company, in derivative contracts that involve varying degrees of market





9





and
credit risk.  With respect to the Partnership’s investment in the
Trading Company, the Partnership has limited liability, and, therefore, its
maximum exposure to either market or credit loss is limited to the carrying
value of its investment in the Trading Company, as set forth in the statements
of financial condition.




The
Trading Company utilizes MF Global, Inc. (“MFG”) and Credit Suisse to clear its
futures trading activity.  The Trading Company utilizes Royal Bank of
Scotland (“RBS”) and JPMorgan Chase to clear its forward trading
activity.




3.
            RECENT
      ACCOUNTING PRONOUNCEMENTS




In
September 2009, the FASB issued Accounting Standard Update No. 2009-12, Investments in Certain Entities that
Calculate Net Asset value per share (or its equivalent), an amendment of
Fair Value Measurements and
Disclosure (Topic 820), or ASU 2009-12. This amendment provides
additional guidance on using the net asset value per share, provided by an
investee, when estimating the fair value of an alternate investment that does
not have a readily determinable fair value and enhances the disclosures
concerning these investments.  Examples of alternate investments,
within the scope of this amendment, include investments in hedge funds, private
equity funds, real estate funds, and venture capital
partnerships.  This amendment is effective for interim and annual
periods ending after December 15, 2009.  As of September 30, 2009, the
fair value of the Partnership’s investment in the Trading Company was measured
using the net asset value of the Trading Company as reported by the Trading
Company’s investment advisor.  The Partnership is currently evaluating
the potential impact of this standard on its financial position and results of
operations




4.
            SUBSEQUENT
      EVENTS




Effective
for interim and annual periods ending after June 15, 2009, the Partnership
adopted the provisions of ASC 855, Subsequent Events (“ASC 855”)
(formerly SFAS No. 165, Subsequent Events) and has
evaluated subsequent events through November 16, 2009, the date the financial
statements were issued.






10





Man-AHL
Diversified Trading Company L.P.


Financial
Statements





STATEMENTS
OF FINANCIAL CONDITION (a)


STATEMENTS
OF OPERATIONS (b)


STATEMENTS
OF CHANGES IN PARTNERS’ CAPITAL (c)


STATEMENTS
OF CASH FLOWS (c)


NOTES TO
THE FINANCIAL STATEMENTS (UNAUDITED)





(a)
            At
      September 30, 2009 (unaudited) and December 31,
  2008


(b)
            For
      the three months ended September 30, 2009 and 2008 (unaudited) and for the
      nine months ended September 30, 2009 and 2008
  (unaudited)


(c)
            For
      the nine months ended September 30, 2009 and 2008
    (unaudited)











11










12









13









14









15




Notes
to Financial Statements (unaudited)




The
accompanying unaudited financial statements, in the opinion of management,
include all adjustments (consisting only of normal recurring adjustments)
necessary for a fair presentation of Diversified Trading Company L.P.’s (a
Delaware Limited Partnership) (the “Trading Company”) financial condition at
September 30, 2009 and the results of its operations for the three months ended
September 30, 2009 and 2008 and nine months ended September 30, 2009 and
2008.  These financial statements present the results of interim
periods and do not include all the disclosures normally provided in annual
financial statements.  It is suggested that these financial statements
be read in conjunction with the audited financial statements and notes included
in Man-AHL Diversified I L.P.’s annual report on Form 10-K filed with the
Securities and Exchange Commission for the year ended December 31,
2008.  The December 31, 2008 information has been derived from the
audited financial statements as of December 31, 2008.





1.
            ORGANIZATION
      OF THE TRADING COMPANY




Man-AHL
Diversified Trading Company L.P. (a Delaware Limited Partnership) (the “Trading
Company”) was organized in November 1997 under the Delaware Revised Uniform
Limited Partnership Act and commenced operations on April 3, 1998, for the
purpose of engaging in the speculative trading of futures and forward
contracts.  Man Investments (USA) Corp. (the “General Partner”), a
Delaware corporation, serves as the Trading Company’s general
partner.  The General Partner is a subsidiary of Man Group plc, a
United Kingdom public limited company that is listed on the London Stock
Exchange.  The General Partner oversees the operations and management
of the Trading Company. The General Partner is registered with the Commodity
Futures Trading Commission (“CFTC”) as a commodity pool operator and commodity
trading adviser and is a member of the National Futures Association
(“NFA”).




The
Trading Company was formed to serve as a trading vehicle for certain limited
partnerships sponsored by the General Partner in a “master-feeder”
structure.  The limited partners, Man-AHL Diversified I L.P., Man-AHL
Diversified II L.P., and Man-AHL Diversified L.P., are limited partnerships
whose general partner is the General Partner.




Man-AHL
(USA) Limited (the “Advisor”), a limited liability company incorporated in the
United Kingdom, acts as trading advisor to the Trading Company.  The
Advisor is an affiliate of the General Partner and a subsidiary of Man Group
plc.  The Advisor is registered with the CFTC as a commodity pool
operator and commodity trading advisor, and is a member of the NFA, in addition
to registration with the Financial Services Authority in the United
Kingdom.  On April 21, 2008, the Trading Company engaged Man
Investments Limited, a company organized under the Laws of the United Kingdom,
to manage the foreign currency forward component of the AHL Diversified Program,
at no additional cost to the Trading Company.  The personnel of Man
Investments Limited responsible for implementing the foreign currency forwards
trading component of the AHL Diversified Program on behalf of the Trading
Company are the same as those of the Advisor who implement the AHL Diversified
Program.




2.
            SIGNIFICANT
      ACCOUNTING POLICIES




The
Trading Company prepares its financial statements in conformity with accounting
principles generally accepted in the United States of America.  The
following is a summary of the significant accounting and reporting policies used
in preparing the financial statements.




In June
2009, the Financial Accounting Standards Board (“FASB”) issued Accounting
Standards Codification (“ASC”) 105, Generally Accepted Accounting
Principles (“ASC 105”) (formerly Statement of Financial Accounting
Standards (“SFAS”) No. 168, “The FASB Accounting Standards
Codification and the Hierarchy of Generally Accepted Accounting Principles-a
replacement of FASB Statement No. 162”), which establishes the FASB
Accounting Standards Codification (the “Codification” or “ASC”) as the source of
authoritative U.S. generally accepted accounting principles recognized by the
FASB to be applied by nongovernmental entities.  This statement is
effective for financial statements issued for interim and annual periods ending
after September 15, 2009.  On the





16





effective
date of this statement, the Codification superseded all then-existing non-SEC
accounting and reporting standards.  All other non-grandfathered
non-SEC accounting literature not included in the Codification became
non-authoritative.  The adoption of ASC 105 required the Trading
Company to adjust references to authoritative accounting literature in the
financial statements, but did not affect the Trading Company’s financial
position or results of operations.  The Trading Company has
implemented the Codification as of September 30, 2009.




Use of Estimates — The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires the General Partner
to make estimates and assumptions that affect the reported amounts of assets and
liabilities (and disclosure of contingent assets and liabilities) at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.




Due From Brokers — Due from
brokers consists of balances due from MF Global, Inc. (“MFG”), Credit Suisse,
JPMorgan Chase and Royal Bank of Scotland (“RBS”).  In general, the
brokers pay the Trading Company interest monthly, based on agreed upon rates, on
the Trading Company’s average daily balance.




MFG is
registered with the CFTC as a futures commission merchant and is a members of
the NFA.




Amounts
due from brokers include cash held at brokers and cash posted as collateral.
Included in due from broker on the statements of financial condition is
$13,959,729 of cash restricted as collateral held.




Derivative Contracts — In the
normal course of business, the Trading Company enters into derivative contracts
(“derivatives”) for trading purposes.  Derivatives traded by the
Trading Company include futures contracts and forward contracts.  The
Trading Company records derivatives at fair value. Futures contracts, which are
exchanged-traded, are valued at the close price as of the valuation day, or if
no sale occurred on such day, at the close price on the most recent date on
which a sale occurred.  Forward contracts, which are not
exchanges-traded, are valued at fair value using current market quotations
provided by brokers.




Realized
and unrealized changes in fair values are included in realized and unrealized
gains and losses on investments and foreign currency transactions in the
statements of operations.  All trading activities are accounted for on
a trade-date basis.




3.
            FAIR
      VALUE MEASUREMENTS




The
Trading Company segregates its investments into three levels based upon the
inputs used to derive the fair value.  “Level 1” investments use
inputs from unadjusted quoted prices from active markets.  “Level 2”
investments reflect inputs other than quoted prices, but use observable market
data.  “Level 3” investments are valued using unobservable
inputs.  These unobservable inputs for “Level 3” investments reflect
the Trading Company’s assumption about the assumptions market participants would
use in pricing the investments.  As of September 30, 2009, the Trading
Company did not have any positions in “Level 3”.




17









4.
            DERIVATIVE
      TRANSACTIONS




The
Trading Company has adopted the provisions of FASB ASC 815, Derivatives and Hedging (“ASC
815”) (formerly SFAS No. 161, “Disclosures about Derivative
Instruments and Hedging Activities, an amendment of FASB Statement No. 133(“SFAS No. 133”)”).  ASC 815 intends to provide users of
financial statements with an enhanced understanding of: (i) how and why an
entity uses derivative instruments; (ii) how derivative instruments and related
hedged items are accounted for under SFAS No. 133 and its related
interpretations; and (iii) how derivative instruments and related hedged items
affect an entity’s financial position, financial performance, and cash
flows.  Adoption of ASC 815 impacted disclosures only and had no
impact on the Trading Company’s financial condition, results of operations or
cash flows.




The
investment objective of the Trading Company is achieved by participation in the
AHL Diversified Program directed on behalf of the Trading Company by Man-AHL
(USA) Limited.  The AHL Diversified Program is a futures and forward
price trend-following trading system, entirely quantitative in nature, and
implements trading positions on the basis of statistical analyses of past price
histories.  The objective of the Trading Company is to deliver
substantial capital growth for commensurate levels of volatility over the medium
term, independent of the movement of the stock and bond markets, through the
speculative trading, directly and indirectly, of physical commodities, futures
contracts, spot and forward contracts, options on the foregoing, exchanges of
futures for physical transactions and other investments on domestic and
international exchanges and markets (including the interbank and OTC
markets).  The AHL Diversified Program trades globally in several
market sectors, including, without limitation, currencies, bonds, energies,
stocks indices, interest rates, metals and agriculture.




All the
strategies and systems of the AHL Diversified Program are designed to target
defined volatility levels rather than returns, and the investment process is
underpinned by computer-supported analytical instruments and disciplined
real-time risk and management information systems.  A proprietary risk
measurement method similar to the industry standard “value-at-risk” helps ensure
that the rule-based decisions that drive the investment process remain within
predefined risk parameters.  Margin-to-equity ratios are monitored
daily, and the level of exposure in each market is quantifiable at any time and
is adjusted in accordance with market volatility.  Market correlation
is closely monitored to prevent over-concentration of risk and ensure optimal
portfolio weightings.  Market liquidity is examined with the objective
of ensuring that the Trading Company will be able to initiate and close out
trades as indicated by AHL Diversified Program’s systems at market prices, while
brokerage selection and trade execution are continually monitored with the
objective of ensuring quality market access.




During
the quarter ended September 30, 2009, the Trading Company traded 73,169
exchange-traded future contracts and settled 34,453 OTC forward contracts. 
During the nine month period ended





18





September
30, 2009, the Trading Company traded 190,650 exchange-traded future contracts
and settled 70,447 OTC forward contracts.




The
Trading Company trades derivative financial instruments that involve varying
degrees of market and credit risk.  Market risks may arise from
unfavorable changes in interest rates, foreign exchange rates, or the fair
values of the instruments underlying the contracts.  All contracts are
stated at fair value, and changes in those values are reflected in the change in
net unrealized trading gains (losses) on open contracts in the statements of
operations.




Credit
risk arises from the potential inability of counterparties to perform in
accordance with the terms of the contract. The credit risk from counterparty
non-performance associated with these instruments is the net unrealized trading
gain, if any, included in the statements of financial condition. Forward
contracts are entered into on an arm’s-length basis with RBS.  As
required by the Derivatives and Hedging Topic of the FASB Accounting Standards
Codification, the Trading Company’s accounting policy is such that open
contracts with the same counterparty are netted at the account level, in
accordance with master netting arrangements in place with each party, as
applicable. Netting is effective across products and cash collateral when so
specified in the applicable netting agreement.




For
exchange-traded contracts, the clearing organization functions as the
counterparty of specific transactions and, therefore, bears the risk of delivery
to and from counterparties to specific positions, which mitigates the credit
risk of these instruments.  At September 30, 2009 and December 31,
2008, estimated credit risk with regard to forward contracts was $4,430,233 and
$1,527,892, respectively.




The
following table presents the fair value of the Trading Company’s derivative
instruments and statement of financial condition location.










** Open
forward and future contracts are presented on the gross basis for purposes of
the table above. Net unrealized trading gains and losses are netted by
counterparty in the statements of financial condition in accordance with
generally accepted accounting principles related to the right of
offset.





The
following table presents the impact of derivative instruments on the statements
of operations. The Trading Company did not designate any derivatives as hedging
instruments for the three months ended September 30, 2009.





19









5.
            SUBSEQUENT
      EVENT




Effective
for interim and annual periods ending after June 15, 2009, the Trading Company
adopted the provisions of ASC 855, Subsequent Events (“ASC 855”)
(formerly SFAS No. 165, Subsequent Events) and has
evaluated subsequent events through November 16, 2009, the date the financial
statements were issued.




20




ITEM
      2.
            Management's
      Discussion and Analysis of Financial Condition and Results of
      Operations.




Introduction




Reference
is made to Item 1, “Financial Statements.”  The information contained
therein is essential to, and should be read in conjunction with, the following
analysis.




Operational
Overview




Man-AHL
Diversified I L.P. (the “Partnership”) is a speculative managed futures fund
which trades through its investment in Man-AHL Diversified Trading Company L.P.
(the “Trading Company”) pursuant to the AHL Diversified Program, directed on
behalf of the Partnership by Man-AHL (USA) Limited (the
“Advisor”).  The AHL Diversified Program is a futures and forward
price trend-following trading system, entirely quantitative in nature, and
implements trading positions on the basis of statistical analyses of past price
histories.  The AHL Diversified Program is proprietary and
confidential, so that substantially the only information that can be furnished
regarding the Partnership’s results of operations is contained in the
performance record of its trading.  Past performance is not
necessarily indicative of its futures results.  Man Investments (USA)
Corp., the general partner of the Partnership (the “General Partner”) does
believe, however, that there are certain market conditions, for example, markets
with pronounced price trends, in which the Partnership has a greater likelihood
of being profitable than in other market environments.




Capital
Resources and Liquidity




Units of
limited partnership interests (“Units”) of the Partnership may be offered for
sale as of the beginning, and may be redeemed as of the end, of each
month.




The
Partnership raises additional capital only through the sale of Units and capital
is increased through trading profits (if any) and interest
income.  The Partnership does not engage in borrowing.  The
Partnership, not being an operating company, does not incur capital
expenditures.  It functions solely as a passive trading vehicle,
investing the substantial majority of its assets in the Trading
Company.  Its remaining capital resources are used only as assets
available to make further investments in the Trading Company and to pay
Partnership level expenses.  Accordingly, the amount of capital raised
for the Partnership should not have a significant impact on its
operations.




Partnership
assets not invested in the Trading Company are maintained in cash and cash
equivalents in bank accounts or accounts with the JPMorgan Chase Bank, N.A. (the
“Broker”) and are readily available to the Partnership.  The
Partnership may redeem any part or all of its limited partnership interest in
the Trading Company at any month-end at the net asset value per unit of the
Trading Company.  The Trading Company’s assets are generally held as
cash or cash equivalents which are used to margin futures and provide collateral
for forward contracts and other over-the-counter contract positions and are
withdrawn, as necessary, to pay redemptions (to the Partnership and other
investors in the Trading Company).  Other than potential
market-imposed limitations on liquidity, due, for example, to limited open
interest in certain futures markets or to daily price fluctuation limits, which
are inherent in the Trading Company’s futures trading, the Trading Company’s
assets are highly liquid and are expected to remain so.




There
have been no material changes with respect to the Partnership's critical
accounting policies, off-balance sheet arrangements or disclosure of contractual
obligations as reported in the Partnership's Form 10-K filed March 31,
2009.




21




Results
of Operations




Due to
the nature of the Partnership’s trading, the results of operations for the
interim period presented should not be considered indicative of the results that
may be expected for the entire year.




Periods Ended September 30,
2009:





30-Sep-09Ending
      Equity
            $331,041,488





Three
months ended September 30, 2009:




Net
assets increased $60,448,947 for the three months ended September 30,
2009.  This increase was attributable to subscriptions in the amount
of $63,598,025, redemptions in the amount of $10,958,375 and a net gain from
operations of $7,809,297.




Management
Fees of $2,378,017, brokerage commissions of $259,857 and servicing fees of
$1,196,888 were paid or accrued, and interest of $142,324 was earned or accrued
on the Partnership’s cash and cash equivalent investments, for the three months
ended September 30, 2009.




The
Partnership’s other expenses paid or accrued for the three months ended
September 30, 2009 were $129,744.




Nine
months ended September 30, 2009:




Net
assets increased $111,799,728 for the nine months ended September 30,
2009.  This increase was attributable to subscriptions in the amount
of $181,676,474, redemptions in the amount of $40,169,883 and a net loss from
operations of $29,706,863.




Management
Fees of $6,092,414, brokerage commissions of $550,480 and servicing fees of
$3,056,697 were paid or accrued, and interest of $372,691 was earned or accrued
on the Partnership’s cash and cash equivalent investments, for the nine months
ended September 30, 2009.




The
Partnership’s other expenses paid or accrued for the nine months ended September
30, 2009 were $400,031.




Three
months ended September 30, 2009:




The
agriculturals sector posted an overall profit despite the majority of trades
incurring losses. Short positions in wheat were the key driver as prices
declined due to news that US harvests would meet and possibly exceed the year’s
target. Whipsawing prices caused losses on both long and short positions in
cotton, while similarly volatile conditions caused losses on positions in
soymeal and soybeans. Long positions in sugar were profitable as prices surged
to 28-year highs. Concerns over a global shortage were driven by poor crop
yields in key sugar-producing nations, specifically, India and Brazil. Cocoa
prices also rallied in the quarter, reaching a 24-year high as crop disease and
aging cocoa trees are expected to significantly impact yields from the world’s
largest producer, the Ivory Coast. The AHL Diversified Program accrued gains
from the movement in cocoa prices, but losses from trading in coffee more than
offset such gains. Both long and short positions in coffee suffered losses as
prices shifted wildly throughout the quarter. Trading in lean hogs and live
cattle both made gains as short positions in such commodities benefited from a
decline in prices.




The bond
sector experienced a loss over the quarter due to uncertainties in the bond
markets.  On the one side, signs of an economic recovery took
investors out of “safe haven” investments in search of higher returns. However,
on the other side, speculation that interest rates around the globe would stay
at historical lows for the foreseeable future attracted buyers. As a result, the
bond sector experienced a loss





22





as prices
whipsawed throughout the quarter. Positions in Euro-Bunds, US Treasuries and
Australian bonds proved particularly damaging to the AHL Diversified Program’s
performance. In the United States, bond prices were further affected by numerous
US government bond issuances, which drove prices up or down depending on the
success of the auctions. On the positive side, long positions in Japanese bonds
offset losses somewhat as prices appreciated on increasing fears over a new
deflationary spiral in Japan.




Income
from trading in currency markets experienced volatility during the quarter,
posting a gain in July and a loss in August before enjoying a strong
September.




The main
theme of the quarter was the weakening of the US dollar (which fell around 5% on
a trade weighted basis) due to a number of factors, namely: growing investor
risk appetite throughout the quarter, to the detriment of “safe haven” assets
such as the US dollar, as investors searched for higher returns, speculation
that US interest rates would remain at historically low levels for the
foreseeable future, and continuing questions as to the US dollar’s status as a
reserve currency. The AHL Diversified Program was able to capture this trend
through short US dollar positions against a number of other currencies, the most
profitable short positions being against the Australian dollar, Japanese yen and
Brazilian real. The Australian dollar had a particularly strong quarter, as
speculation grew that the Reserve Bank of Australia would move to raise interest
rates over the next couple of months.




On the
negative side, long Euro positions against the Japanese yen posted the greatest
loss as uncertainty over the sustainability of the Euro zone recovery plagued
this single currency. Meanwhile, both long and short positions in the British
pound against the US dollar suffered from whipsawing prices and positions,
mainly due to the UK government extending their quantitative easing program,
weakening the pound at a time when a upwards trend had been
established.




Trading
in energy markets ended the quarter as the largest drag on the overall
performance of the AHL Diversified Program. On a monthly basis, performance was
relatively flat over July and August, with the bulk of losses coming in
September. Crude oil positions were responsible for the greatest losses as oil
prices fluctuated within a relatively tight band, displaying no clear trend and
as such causing losses due to whipsawing. Losses were incurred on both the long
and short sides, in almost equal proportion. On the one side, an improving
economic picture and rising optimism pushed prices higher. While on the other
side, lingering concerns that prices had got ahead of demand, a view that was
backed up by inventory data showing that stockpiles remained larger than
forecasts, sent prices lower. On the positive side, short natural gas positions
posted good profits as natural gas prices fell to a 7-year low in August, on the
back of abundant supplies, although a portion of these gains was offset in
September as prices surged off their lows.




Interest
rate trading accrued a gain over the quarter, led by long positions in
Eurodollar and Short Sterling contracts. Eurodollar prices moved upwards as the
huge amounts of liquidity pumped into the banking system by the European Central
Bank continued to filter through over the quarter. Prices also rose higher as
comments from European Central Bank policymakers led analysts to believe that
interest rates would be kept at historical lows well into 2010. In the US, the
Federal Reserve extended the duration of its program for purchases of debt from
banks, also increasing speculation of a prolonged period of low interest rates
in the US. Elsewhere, Short Sterling rose over the period due to an increase in
confidence that interest rate would remain low as a result of the Bank of
England’s decision to extend its quantitative easing program.




The
metals sector experienced a mixed quarter with strong performance in early
September making up for earlier losses. However, choppy markets towards the end
of the period presented difficulties with the AHL Diversified Program failing to
lock profits in. Short aluminum positions posted the largest loss over the
quarter after originally profiting from the downward metals trend in early July.
A reversal in risk appetite and a falling US dollar were responsible for the
bulk of losses on short aluminium positions. Whipsawing prices through August
caused further losses on the majority of the AHL Diversified Program’s metals
positions. A cautious change in sentiment in September recouped losses as
investors





23





grew
concerned of a potential correction in the global equity market. In addition,
the expectation of a prolonged period of low US interest rates increased the
attractiveness of precious metals as an alternative asset class. As a result,
long gold and silver contracts posted robust profits.




Trading
in stock indices for the quarter finished negative despite accumulating gains in
April. Highly volatile markets since mid May meant the AHL Diversified Program
could not benefit from any sustained trends and duly surrendered all earlier
profits. The biggest losses were from exposure to the S&P 500. Despite the
index having its best quarter since 1998, choppy trading meant the AHL
Diversified Program was unable to lock-in these gains. Other detractors came
from European markets with the Euro-Stoxx and Dax Index also lacking any
consistent trends. Long positions in the Hang Seng generated profits for the
quarter as Asian stocks surged upwards encouraged by signs of a global economic
recovery.




Stock
trading was the best performing sector within the AHL Diversified Program this
quarter. Generally, equities enjoyed one of the strongest quarters on record as
economic data drove investors to price in a recovery and a return to economic
growth. Positions in this quarter were almost entirely held long. As a result,
the vast majority of positions were able to capture the rally and post profits.
The strongest gains came from exposure to US indices, namely the S&P 500 and
the NASDAQ 100. The exceptions were long positions in Japanese indices, namely
the Nikkei 225 and Topix indices. Both indices were impacted by a decline in
stock values during September as the Bank of Japan admitted it saw ‘downside
risks to growth’ and the Japanese yen remained strong, hitting the stock values
of exporters. As a result, long positions in such indices acted as detractors to
the AHL Diversified Program’s overall performance.




Three
months ended June 30, 2009:




Agriculture
produced significant losses during the quarter, primarily driven by cotton,
wheat, coffee and cocoa positions. Cotton reached a six month high in early May,
although the AHL Diversified Program did not lock-in any profits due to volatile
trading. Short positions in wheat for April and May resulted in losses, as
prices rose. Losses were partially recovered in late June as short positions
profited from declining prices. Switching in mid-May to a long position in
coffee proved profitable in the short term, as wholesale coffee prices rose due
to continued demand despite the economic downturn. However, all gains were
reversed as prices fell sharply in June. Cocoa prices were highly volatile again
this quarter, as market sentiment over long term demand whipsawed, preventing
any profits from emerging. Sugar produced the greatest return as long positions
gained from a sustained rally.




The bond
sector experienced a loss over the quarter, dragged particularly by April’s
negative performance. The AHL Diversified Program’s long positions in US and
European government bonds proved particularly damaging to performance after
prices generally fell as risk appetite rose.




Renewed
concerns over a dramatic increase in US government bond issuance over the coming
months weighed heavily on US Treasuries. Prices fell further after a report on
home prices supported the view that the US housing market was stabilizing. In
Europe, bond prices slumped after the European Central Bank cut rates by a
smaller-than-expected amount. Elsewhere, long positions in UK Gilts also proved
damaging over April and May as prices fell amid increasing alarm over UK’s
rising debt levels and fears that it could lose its triple A credit
status.




Elsewhere,
long positions in Japanese government bonds were impacted by significant
fluctuations in May price movements.  A switch to short positions in
early June also proved unfavorable as prices rallied strongly throughout June.
Poor economic data, which suggested a slow economic recovery, was the main
driver of demand for the safe haven asset.  Profits generated from
exposure to Australian bonds over May and June managed to trim losses. As
Australian bond prices trended lower, the AHL Diversified Program’s short
positions benefited.




Currency
market trading incurred a loss for the quarter as a large degree of choppy
movements negatively impacted performance and offset gains
elsewhere.




24




At the
beginning of the period, world equity markets had enjoyed a month of strong
rising markets as investors responded to an improvement in news flow by
increasing risk levels. This rally in riskier assets continued in April and May
as signs of life in the banking system grew larger and China’s huge stimulus
plan began to filter through to official statistics. The latter played a key
role in the advance of commodity-linked currencies such as AUD, ZAR, BRL and NZD
in which the AHL Diversified Program held long positions against
USD.  All contributed strongly to returns over the period, although
the month of June was less beneficial than the previous two, as trends eased to
trade largely within a band.




For many
currencies, volatility in June was merely a continuation of choppy movements
experienced in the previous two months. For currency pairs, EUR/GBP and JPY/USD,
the quarter was significantly volatile with little observable trends developing.
This led to a significant fluctuation of positions which ultimately caused
losses for the AHL Diversified Program. The same was apparent with trading in
EUR/CHF although losses here were extended further due to a sharp snapback in
late June. Finally, the largest loss to the AHL Diversified Program came from
short positions in GBP/USD as the British pound advanced on the back of the rise
in risk appetite seen over April and May. In June, the currency traded within a
band with no notable trend, negatively impacting returns again.




The
energy sector produced the largest contribution to overall returns during the
quarter. Switching in early May to a long position in Crude Oil proved
profitable as it rallied to an eight month high of over USD 73 per barrel in
June. However, profits tailed off slightly toward the end of the month on news
of weaker-than-expected US consumer confidence. Gains also came from long
positions in Gasoline which closely followed the performance of
crude.  Natural gas detracted from profits as prices significantly
fluctuated due to conflicting economic data and concerns over a “supply crunch”
after Gazprom announced investment cuts and production delays.




Interest
rate trading was the principal source of losses for the quarter. Primarily long
positions in Eurodollar, Euribor and Short Sterling were responsible for the
losses as the previously profitable trend reversed in the second half of May and
in early June. Eurodollar prices plummeted over the period as positive economic
data, better than expected US unemployment figures being the main trigger,
sparked speculation of a rise in the US interest rates and a significant
increase in LIBOR rates towards the back end of the year. However, losses were
limited by gains secured in May especially from long positions in Eurodollar,
Euribor and Short Sterling.




Metals
positions suffered losses over the quarter. Base metals produced the worst
return with short positions in Nickel, Aluminum and Copper losing heavily as
these commodities climbed on positive manufacturing surveys in the US, Europe
and China and a weak US dollar. Long positions in the precious metals all
incurred small losses as prices fell sharply mid-way through June. Long
positions in Gold made steady profits during May, but again were quickly
reversed in June as the dollar strengthened.




Trading
in stock indices for the quarter finished negative despite accumulating gains in
April. Highly volatile markets since mid May meant the AHL Diversified Program
could not benefit from any sustained trends and duly surrendered all earlier
profits. The biggest losses were from exposure to the S&P 500. Despite the
index having its best quarter since 1998, choppy trading meant the AHL
Diversified Program was unable to lock-in these gains. Other detractors came
from European markets with the Euro-Stoxx and Dax Index also lacking any
consistent trends. Long positions in the Hang Seng generated profits for the
quarter as Asian stocks surged upwards encouraged by signs of a global economic
recovery.




Three
months ended March 31, 2009:




Equity
markets continued on their downward trend in early 2009, before rallying
strongly in March.  Concerns over the severity of the worldwide
recession and lingering fears of bank nationalization drove equity values lower
in January and February. However, optimism returned to the market in March as
economic data improved and market commentators started to talk of a market
bottom being reached.




25




Amid this
environment, the AHL Diversified Program failed to build on its strong
performance from last quarter. Numerous long standing trends, from which the AHL
Diversified Program had profited in the past, became volatile or reversed
direction. This was the case for the majority of sectors, but currency and bond
markets in particular. Currency trading posted a loss over the quarter, with the
majority of losses coming in the last three weeks of March. Long Japanese yen
positions against the US dollar proved to be the largest detractor to
performance. Demand for the yen fell over the period as its appeal as a “safe
haven” asset came under threat. Poor export data and GDP figures painted a bleak
picture of the Japanese economy, while an uptick in risk appetite also reduced
demand for the yen. Within bond markets, primarily long positions in almost all
markets (US Treasuries and Japanese bond position in particular) were
responsible for losses as previously profitable trends became volatile and
choppy, with many positions impacted by a whipsawing in prices.




On the
positive side, exposure to equity and short-term interest rate markets posted
gains. A number of short equity positions capitalized on the slide in equity
values around the world, with short S&P 500 contracts providing the greatest
gains. On the short-term interest rate market side, long Euribor positions were
solely responsible for the positive returns seen within the sector.




The
agriculturals sector had mixed performance after small gains from wheat
positions were offset by slight losses from exposure to soymeal, soybeans and
corn. Short positions in wheat posted gains as prices continued to edge lower
due to demand concerns fuelled by the weakening economy. However, short
positions in soy and corn proved detrimental, especially in March, after prices
rose as Argentine farmers halted grain sales after the government rejected
demands to cut a 35% export tariff on soya.




Trading
in government bond markets posted a loss over the quarter. Primarily long
positions in almost all markets were responsible for the losses as previously
profitable trends became volatile and choppy, with many positions impacted by a
whipsawing in prices. Falling equity prices in January and February drove more
investors into bond markets. However, March saw a large rally in equities as
risk appetite improved, removing some demand for government
securities.




Currency
trading posted a loss over the quarter, with the majority of losses coming in
the last three weeks of March. Long Japanese yen positions against the US dollar
proved to be the largest detractor to performance. Demand for the yen fell over
the period. Short British pound positions versus the US dollar posted losses,
mainly due to volatility in this currency pair as the FX rate finished the
quarter relatively unchanged. The Swiss National Bank’s (SNB) decision to
intervene and devalue its currency produced negative performance for the AHL
Diversified Program’s long positions in the Swiss franc against the US dollar.
The SNB narrowed its target interest rate range, sold francs and bought bonds in
an attempt to provide stimulus to the countries export-driven economy and to
avoid deflation. Short Euro versus US dollar positions also weighed on
performance, particularly over the latter half of the quarter. The US currency
weakened as the Federal Reserve announced it was set to implement a quantitative
approach to monetary policy. The Fed stated it would buy $300bn of long-term US
Treasuries in an effort to boost market liquidity, surprising most
investors.




Energy
trading had an overall negative quarter as the previous year’s trend in the oil
market came to an end. The AHL Diversified Program struggled with whipsawing
trends in oil markets as prices became largely range bound as market forces in
both directions bought against each other. Global recession pushed oil prices
down while OPEC agreed to cut production and some positive economic data helped
rally commodities. Losses were improved by gains in short natural gas
trades.




Interest
rate trading posted gains for the quarter. Long Euribor positions were
responsible for almost all of the sector’s positive performance. Fears of
deflation, expectations of interest rates cuts and actual ECB moves in the
Eurozone area boosted prices throughout the period. Holding back further gains
were losses from Eurodollar positions held in February.




Trading
in base metals made a slight loss over the period. Short positions in copper
were the largest detractor from performance as the commodity experienced a rally
towards the end of the period amidst





26





improving
US economic data and a more optimistic outlook for the Chinese economy. Short
positions in aluminum proved to be the best performer as prices declined sharply
over January as the outlook for future demand deteriorated and stock levels
increased, pushing prices lower. Trading in precious metals posted a loss over
the quarter. Short positions in silver proved to be misplaced as prices rose
during the first of the period on safe haven buying. Long gold trades benefited
from this safe haven buying over the first half of the period. However, prices
failed to break through the all important $1000 mark, falling back quickly and
becoming largely range bound, leading to losses over the second half of the
quarter.




Periods Ended September 30,
2008:





30-Sep-08Ending
      Equity
            $162,663,046





Three
months ended September 30, 2008:




Net
assets increased $41,757,878 for the three months ended September 30,
2008.  This increase was attributable to subscriptions in the amount
of $59,372,518, redemptions in the amount of $1,743,697 and a net loss from
operations of $15,870,943.




Management
Fees of $1,127,974, brokerage commissions of $246,259 and servicing fees of
$393,316 were paid or accrued, and interest of $800,286 was earned or accrued on
the Partnership’s cash and cash equivalent investments, for the three months
ended September 30, 2008.




The
Partnership’s other expenses paid or accrued for the three months ended
September 30, 2008 were $102,081.




Nine
months ended September 30, 2008:





Net
assets increased $103,107,656 for the nine months ended September 30,
2008.  This amount represents subscriptions in the amount of
$115,503,154, redemptions in the amount of $9,395,158 and a net loss from
operations of $3,000,340.




Management
Fees of $2,544,812, Incentive Fees of $3,211,277, brokerage commissions of
$871,073 and servicing fees of $393,316 were paid or accrued, and interest of
$1,889,067 was earned or accrued on the Partnership’s cash and cash equivalent
investments, for the nine months ended September 30, 2008.




The
Partnership’s other expenses paid or accrued for the nine months ended September
30, 2008 were $226,774.




Three
months ended September 30, 2008:




The
reversal of several major trends and volatile market conditions contributed to
losses in this period.  Commodities suffered declines as the prospect
of weaker global economic growth raised concerns over future
demand.




Energy
trading produced losses early in the period, as long positions across a number
of markets suffered from a correction in prices.  Losses in energy
trading were caused by long positions in crude oil as prices fell 11.4% and
continued to decline in August. Long positions in natural gas caused losses in
July, but short positions in natural gas led to improved performance in
August.  Short positions in crude oil and oil related products reaped
strong rewards in September as prices fell after Hurricane Ike shifted its
course away from the Gulf of Mexico.




Trading
in agriculturals resulted in losses in both July and August as positions in
corn, cocoa, wheat, coffee and soybeans incurred losses. In September, positions
cotton, wheat and corn proved particularly profitable.




27




Losses
were accrued by short UK Gilt trades in July and pessimism over the outlook for
the global economy boosted returns from the bond sector in August, particularly
for long positions in Japanese bonds, Australian bonds and UK
Gilts.  In September, long positions in bonds suffered after prices
fluctuated and investors’ appetite for risk ebbed and flowed over the
month.




Currency
trading posted some gains early in the period through long Mexican peso and
Brazilian real positions against the US dollar, but these were offset by losses
from long positions in the euro versus the US Dollar and British pound and
Australian dollar versus the US Dollar.  The US Dollar rallied during
July and August amid positive corporate earnings and supportive comments from US
officials.  Short positions in various major currencies against the US
dollar detracted from returns in September.  The US currency weakened
mid-September on concerns over the longer-term consequences of the US Treasury’s
proposed financial bailout package.




Equity
markets were volatile over the period. After registering mixed performance in
July, equity markets advanced in August after positive earnings announcements
and then severely declined in September as the financial sector came under
pressure.  Short positions in various stock indices were profitable in
September as the FTSE 100, Nikkei and Hang Seng plunged over 13%.




Three
months ended June 30, 2008:




Trading
in oil and gas markets proved particularly profitable over the period, where
long positions in crude oil and natural gas drove gains. Crude oil surged to new
highs during the period and natural gas prices rose sharply amid increased
demand from the power sector.





Long
crude oil positions registered strong gains as West Texas Intermediate (“WTI”)
rose 11.7% in April. A record high of US $119.70 per barrel was reached on April
25, as a weakening US dollar, unexpected falls in US inventories and production
difficulties drove prices higher. Long positions in products derived from crude
oil, such as RBOB gasoline, heating oil and gas oil, also made gains as prices
rose sharply.  WTI sustained its rise in May. A new closing high above
US $132 per barrel was reached amid worries that demand would outstrip supply
within the next few years and on the back of robust demand from China ahead of
the Olympics. Meanwhile, OPEC continued to insist that there was no shortage of
supply in the market and that elevated prices were a consequence of US dollar
weakness and investor speculation. WTI hit fresh highs again in June as
geopolitical tensions and concerns about disruptions to output in Nigeria
intensified, overshadowing Saudi Arabia's pledge to provide more crude
supplies.





Increasing
inflationary pressures and changing interest rate expectations proved beneficial
for bond and interest rate trading during the period as short positions in
Eurobonds and Euribor contributed to performance. Prices fell in June on
heightened speculation that the European Central Bank would lift interest rates
after eurozone inflation continued to rise. Profits were slightly offset,
however, by long positions in Asian equities and various equity indices as
markets came under pressure on fears over stagflation and falling confidence in
the financial and housing sectors.





The
period highlighted the increasingly difficult task facing the world's central
banks. The need to balance the risks to growth and the risks of accelerating
inflation saw a continued divergence in monetary policy over the
month.  In April, the Bank of England and Federal Reserve took action
to protect growth, both lowering interest rates by 0.25%, while the European
Central Bank focused on controlling inflation and left base rates unchanged at
4%.  Both the Bank of England and European Central Bank left interest
rates unchanged over the months of May and June.





In
currency markets, the US dollar regained some ground early in the period as
investors speculated that the latest decrease in US interest rates may mark the
end of the current loosening cycle.  The general improvement in
sentiment witnessed during April gave strength to the US dollar, which rallied
against the euro and Japanese yen towards the end of April, negatively affecting
our currency positions.  May and June witnessed US dollar weakness and
investor speculation.  In May, the Australian dollar hit a 24-year





28





high
against the US dollar on the back of surging commodity prices and disappointing
US consumer confidence figures, which resulted in gains from long Australian
dollar positions.





Equity
markets began to recover in April from the heavy declines they registered in the
first quarter with the S&P 500, FTSE 100 and Nikkei 225 ending up over 4%,
6% and 10%, respectively.  Global equity markets continued to trend
higher in May as encouraging economic data releases in the US bolstered investor
sentiment and dampened talks of a recession.  Global equities suffered
a sharp sell-off in June, however, with the financial sector driving losses,
after persistent speculation that further sub-prime related writedowns were
imminent. The FTSE 100 and S&P 500 lost around 7% and 9%, respectively,
while the MSCI Asia Pacific fell 8.8%. The slide in equities and gains in
commodities increased gold's appeal, the precious metal rose 4.3% over the month
June.





Three
months ended March 31, 2008:




Equity
markets suffered heavy losses during the quarter as concerns over the health of
the financial system intensified and the outlook for the US economy
deteriorated.  January saw the largest declines with a number of
European and Asian indices registering double-digit monthly losses. Conditions
improved in February and March but equities continued to trend lower and markets
remained highly volatile.  The sharp sell-off in equity markets came
despite the Federal Reserve slashing its target funds rate from 4.25% to 2.25%
and central banks throughout the world injecting additional funds into money
markets to increase liquidity.  The Federal Reserve’s decision to cut
rates aggressively put further downward pressure on the dollar. The US currency
slumped to lifetime lows against the euro and Swiss franc and sank to a
multi-year low against the Japanese yen.  The weakness of the US
dollar sent commodity prices sharply higher. Oil rose to a series of lifetime
highs, spending most of the second half of the quarter above US $100 per barrel,
while gold, base metal and agricultural prices also climbed to record
highs.




Trading
within agricultural markets made gains across the majority of contracts, with
corn trading providing the largest contribution. Soy-based products rose to
record highs during February on speculation that increased Chinese demand would
cut into US inventories, although March saw a retraction in prices, paring
earlier gains from long positions. Prices in soybean oil declined as Chinese
importers surprisingly cancelled an order and US farmers stated that a greater
proportion of land would be allocated to soy products in the
near-term.




Bond
trading accrued profits as Japanese bonds and US Treasuries led the way.
Disappointing US economic data saw investors switching out of riskier asset
classes and into government paper; sending the 2-year US Treasury yield from
3.05% on December 31, 2007 to 1.34% by mid-March. Long positions in Japanese
bonds also proved beneficial on increased speculation that the Bank of Japan
would cut interest rates to boost economic growth. However, gains were slightly
offset by short positions in Australian bonds as investors became concerned over
the impact of the credit crunch on economic growth.




Currency
trading contributed excellently during the period. The quarter saw the US dollar
continue to weaken against most major currencies due to ongoing concerns
regarding the credit crisis and the US housing market. As a result, long
positions in various currencies, in particular the Swiss franc, against the US
dollar proved highly beneficial. March witnessed the euro hitting a record high
of US $1.5846, as the European Central Bank (“ECB”) showed no indication of
cutting interest rates in the near future.




Energy
delivered a solid profit for the quarter as a weakening US dollar and increased
demand supported price rises. Long positions in crude oil were beneficial
despite the commodity sliding below US $90 at the beginning of the period.
However, concerns that OPEC may cut production levels and a disruption to oil
production in Nigeria sent prices higher, closing at a record high of US $110.33
per barrel on March 13. Distillate products such as gas oil and heating oil
followed the upward trend of crude, accruing strong profits via our long
positions.




29




Precious
metals trading made a solid profit as long positions in gold, silver and
platinum made gains.  Gold rocketed upwards during the start of the
period, eventually climbing above the US $1000 mark in mid-March. Elevated
global inflation, a deteriorating US economy and a weak US dollar all supported
the rise in gold, silver and platinum. In the base metals component, positive
trading in copper offset losses from aluminum.




Trading
in short-term interest rates posted a firm gain over the first quarter despite
market volatility.  Long positions in Eurodollar and Euribor contracts
posted the largest part of gains as investors bet on rate reductions in the US
and Europe as turmoil swept through global markets. However, these earlier gains
were reduced as hawkish rhetoric from the ECB indicated that interest rates for
the eurozone would remain stable in the near-term.




Stock
market trading posted a gain over the quarter, with short positions in the
Nikkei, TOPIX and S&P 500 proving particularly fruitful. Serious concerns
over the US economy prompted a large scale investor switch out of equities, with
rapidly falling Asian markets reversing some of the gains accrued in 2007. Short
exposure to European markets such as the Euro Stoxx, CAC40 and Dax also
contributed to gains. However, some profits were reversed as the Federal Reserve
intervened to calm markets with a 75bps federal funds rate cut, sending indices
higher at the end of March.




ITEM
      3.
            Quantitative
      and Qualitative Disclosures About Market
Risk.




Not
required.




ITEM
      4T.
            Controls
      and Procedures.




The
General Partner, with the participation of the General Partner's Chief Executive
Officer and Chief Financial Officer, has evaluated the effectiveness of the
design and operation of the Partnership’s disclosure controls and procedures as
of the end of the fiscal quarter ended September 30, 2009.  Based on
such evaluation, the Partnership’s Chief Executive Officer and Chief Financial
Officer have concluded that the Partnership’s disclosure controls and procedures
were effective as of the fiscal quarter ended September 30, 2009.





Changes in Internal Control
over Financial Reporting





There
were no significant changes in the Partnership’s internal control over financial
reporting during the quarter ended September 30, 2009 that have materially
affected, or are reasonably likely to  materially affect, the
Partnership’s internal control over financial reporting.




30




PART II - OTHER
INFORMATION




Item
1. Legal
Proceedings.




None.




Item
1A. Risk Factors.




Not
required.




Item
2. Unregistered
Sales of Equity Securities and Use of Proceeds.




(a)           Pursuant
to the Partnership’s Limited Partnership Agreement, the Partnership may sell
Units of Limited Partnership Interests (“Units”) as of the last business day of
any calendar month or at such other times as the General Partner may
determine.  On July 31, 2009, August 31, 2009 and September 30, 2009,
the Partnership sold Class A Units, exclusive of non-cash transfers, to existing
and new Limited Partners in the amount of $19,873,155, $10,755,504 and
$7,230,910,respectively.  On July 31, 2009, August 31, 2009 and September
30, 2009, the Partnership sold Class A-2 Units, exclusive of non-cash transfers,
to existing and new Limited Partners in the amount of $2,297,000, $2,514,000 and
$2,453,108,respectively.  On July 31, 2009, August 31, 2009 and September
30, 2009, the Partnership sold Class B Units, exclusive of non-cash transfers,
to existing and new Limited Partners in the amount of $8,853,742, $10,755,504
and $2,206,900,respectively.  On July 31, 2009, August 31, 2009 and September
30, 2009, the Partnership sold Class B-2 Units, exclusive of non-cash transfers,
to existing and new Limited Partners in the amount of $414,000, $898,500 and
$635,000,respectively.  There were no underwriting discounts or
commissions in connection with the sales of the Units described
above.




(b)           Not
applicable.




(c)           Pursuant
to the Partnership’s Limited Partnership Agreement, a Limited Partner may redeem
some or all of its Units as of the last business day of each calendar month at
the then current month-end Net Asset Value.  The redemption of Units
has no impact on the value of Units that remain outstanding, and Units are not
reissued once redeemed.  The following table summarizes the amount of
Units redeemed, exclusive of non-cash transfers, during the three months ended
September 30, 2009:







Class A Units
            
            Class A-2 Units
            
            Class B Units
            
            Class B-2 UnitsDate of Redemption:
            
            Amount Redeemed:
            
            Amount Redeemed:
            
            Amount Redeemed:
            
            Amount Redeemed:September
      30, 2009
            
            $3,530,988
            
            $0
            
            $783,024
            
            $0August
      31, 2009
            
            $2,453,783
            
            $0
            
            $549,063
            
            $0July
      31, 2009
            
            $2,806,788
            
            $0
            
            $297,804
            
            $0TOTAL
            
            $8,791,569
            
            $0
            
            $1,629,891
            
            $0







Item
      3.
            Defaults
      upon Senior Securities.




None.




31




Item
4. Submissions
of Matters to a Vote of Security Holders.




None.




Item
5. Other
Information.




None.




Item
6. Exhibits.




The
following exhibits are included herewith:




Designation
            Description4.1
            Sixth
      Amended Limited Partnership Agreement of Man-AHL Diversified I
      L.P.31.1
            Rule
      13a-14(a)/15d-14(a) Certification of Principal Executive
      Officer31.2
            Rule
      13a-14(a)/15d-14(a) Certification of Principal Financial
      Officer32.1
            Section
      1350 Certification of Principal Executive Officer32.2
            Section
      1350 Certification of Principal Financial
  Officer





The
following exhibits are incorporated by reference herein from the exhibits of the
same description and number filed on January 28, 2008 with the Partnership's
Registration Statement on Form 10 (Reg. No. 000-53043).




3.1
            Certificate
      of Limited Partnership of Man-AHL Diversified I L.P.10.1
            Form
      of Customer Agreement between E D & F Man International Inc. and
      Man-AHL Diversified Trading Company L.P.10.2
            Form
      of Trading Advisor Agreement between Man-AHL Diversified I L.P., Man
      Investments (USA) Corp. and Man-AHL (USA) Limited.10.3
            Form
      of Selling Agreement between Man Investments (USA) Corp. and Man
      Investments Inc.





32







SIGNATURES




Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized on November 16, 2009.






Man-AHL
      Diversified I L.P.
                (Registrant)By:
      Man Investments (USA) Corp.
                General
      PartnerBy:
              /s/
      Andrew StewartPresident
      and Chief Executive Officer
                (Principal
      Executive Officer)By:
              /s/
      Alicia Borst DerrahVice
      President, Chief Financial Officer and Secretary
                (Principal
      Financial and Chief Accounting Officer)




33




EXHIBIT
INDEX









Exhibit
      Number
            Description
      of Document4.1
            Sixth
      Amended Limited Partnership Agreement of Man-AHL Diversified I
      L.P.31.1
            Rule
      13a-14(a)/15d-14(a) Certification of Principal Executive
      Officer31.2
            Rule
      13a-14(a)/15d-14(a) Certification of Principal Financial
      Officer32.1
            Section
      1350 Certification of Principal Executive Officer32.2
            Section
      1350 Certification of Principal Financial
  Officer